Dhaka stocks shot up by 338 points in the past week, stretching the gaining streak to the eighth consecutive week, riding on renewed confidence among investors as the economy began showing signs of some recovery.
DSEX, the key index of the Dhaka Stock Exchange, surged by a massive 7.75-per cent, or 338.49 points, to close at 4,703.32 points on the last trading session of the week on Thursday.
The DSEX gained 742.38 points in the past eight consecutive weeks, recovering Tk 44,621.39 crore in market capitalisation.
The week was shortened to four trading sessions from the usual five-day sessions due to a public holiday on Tuesday.
The DSEX started the week with a 180-point gain on Sunday followed by a slight correction in the next session and finished the week with a mammoth gain as investors thronged the market.
The market only witnessed two days of fall in the last four weeks, which reflected a renewed enthusiasm among investors for the market.
Corrective action by the Bangladesh Securities and Exchange Commission in the last couple of months to rein in wrongdoings on the market was the main catalyst behind the recent surge, market operators said.
They said that investors’ confidence was growing as the recent disciplinary and development measures had given them a kind of security about their investment.
All news is interpreted as a reason to rally.
The country’s economy has been looking to regain its footing from a stagnant position with a record surge in export earnings and remittance in recent times.
Adding to that was the fact that the economy grew by 5.24 per cent in the last fiscal year 2019-2020 despite the coronavirus outbreak.
The expansionary monetary policy for the fiscal year 20202021, unveiled by the Bangladesh Bank on July 29, is also expected to increase fund flow to the financial market.
After the dominance of insurance companies over the last seven weeks, investors turned their attention to financial companies in the past week as share prices of most companies remained low.
Average share prices of telecommunication, bank and nonbank financial institutions advanced by 13.4 per cent, 13.1 per cent and 11.6 per cent respectively.
Share prices of all multi-national companies advanced over the past week.
However, share prices of some fundamentally weak companies, including Mithun Knitting, Tung Hai, Apollo Ispat, Dacca Dyeing and Keya Cosmetics, increased by more than 35 per cent each over the week.
Out of the 361 issues traded last week, 282 advanced, 59 declined and 18 remained unchanged.
Daily average turnover on the DSE jumped to Tk 1,126.22 crore in the past week compared to the turnover of Tk 725.97 crore in the previous week.
DSES, the Shariah index of the bourse, also advanced by 7.65 per cent, or 77.36 points, over the week to close at 1,088.46 points.
DSE’s blue-chip index DS30 soared by 8.02 per cent, or 188.43 points, to finish at 1,594.31 points.
Beximco Pharmaceuticals led the turnover chart with shares worth Tk 166.83 crore changing hands in the past week.
Square Pharmaceuticals, the Bangladesh Export Import Company, BRAC Bank, British American Tobacco, Grameenphone, Nahee Aluminium, the Bangladesh Submarine Cable Company, SK Trims Industries and Fu-Wang Foods were the other turnover leaders.
Source: Newagebd
